Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1][8]. Core Insights - The company has shown steady expansion in its store network and the effectiveness of its explosive product strategy is becoming evident [1][7]. - In 2024, the company achieved a revenue of 6.47 billion yuan, reflecting a year-on-year increase of 6%, while the net profit attributable to shareholders was 231 million yuan, a decrease of 4% [5][8]. - The company plans to continue focusing on explosive product combinations and enhancing its supply chain efficiency to improve profitability [6][7]. Summary by Sections Basic Data - Current stock price is HKD 2.01, with a total market capitalization of HKD 55.2 billion and total shares outstanding of 2,747.4 million [2]. Financial Performance - In the second half of 2024, the company reported revenue of 3.80 billion yuan, a 14% increase year-on-year, and a net profit of 145 million yuan, a 10% increase [5][8]. - The gross profit margin for 2024 decreased by 0.3 percentage points to 21.90%, primarily due to the increased volume of low-margin products [6]. Market Strategy - As of the end of 2024, the company had 10,150 stores, with a net increase of 287 stores in rural areas [7]. - The pre-paid card amount increased by 37% in 2024, indicating a successful membership strategy [7]. Profit Forecast - The company expects earnings per share (EPS) of 0.09, 0.10, and 0.12 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 20, 18, and 16 [8][11].
锅圈（02517）：公司事件点评报告：门店稳步拓展，爆品策略显现成效